family loan

London1866

A rather complicated one here....

In 1983 (when I was 13) my father borrowed £10,000 from a friend at 10 per cent interest. Sadly my father died sometime later, the person who lent him the money often reminds me of the fact that the loan was not repaid and states I'm liable as I could of benefited from the money at the time.

I'm about to inherit some money, and wondered can I be made liable for the debt my father had of £10,000 to this person at 10 per cent after all these years? Can interest of 10% be added to the sum each year?

The person who lent the money has talked about a court order in the past, would this still stand?

I'd be prepared to make an offer as a goodwill gesture, but worry this may lead to more problems by officially acknowledgoing the debt.

suelizab

you are not liable for someone else's debts, even family . it was probably a verbal agreement between the two of them , but even if there was a written contract it still doesn't make you liable .

London1866

Great news! Out of interest, how long can a debt stand for? And how long can the interest carry on adding up?

tberry6686

In England with no aknowledgment of the debt (or court action, even then if 6 years have elapsed from the date of any court action he would have to return to court for permission to pursue it again) the debt becomes statute barred after 6 years (5 years in Scotland).

He can add on interest for as long as he likes - makes no difference to you as you cannot be made liable for this debt in any way/shape or form.

The time for him to do something about this debt was when your father died, by trying to reclaim the money from your fathers estate.

Tell this idiot to jog on.

dealer_wins

Reason number 6452 why loans to friends/families are a bad idea!!

Gaz83

Do not make any offer of any sort of a goodwill gesture.

You are not responsible for the financial affairs of your parents. I would firmly remind your dad's friend of that fact. Debts are not passed down generations. As mentioned above, your dad's friend could have had a claim against your dad's estate, but presumably didn't.

Your dad's friend is trying to bully you into repaying it. If it persists, a solicitor's letter informing him of the fact that you cannot be held liable for the debt in any way, shape or form, and that if he keeps mentioning it to you you will regard it as harrassment, could be a next step.

Brock_and_Roll

Perhaps a slightly different view should be taken depending on your and your father's relationship with this friend. If this person was a good personal friend of your father, and assuming that you have more than enough available resources then perhaps you MIGHT feel a moral duty to make a repayment. I am a bit old fashioned in that I care about my family's reputation - that said he can take a hike if he thinks he is getting the interest (£181,000 !!!)

poppasmurf_bewdley

This whole thing is a nonsense since he should have made a claim against your father's estate at the time he died. Evidently he didn't.

You have absolutely no liability in this matter, and you should not let it worry you one little bit.

wiseshark

Your Dad's friend is 'scraping the barrel' by trying to make you responsible for a 30 year debt your father took from him when you were a child.

The levels some people stoop to. Hardly a friend, sounds like desperation and he's trying to make you feel guilty.

Family so called friend or not, tell him to do one.

RichardMiller

Legally you are not bound to repay him for the loan taken by your father. Even if there exists some written evidence for that deal unless there is not consent from you on that, you will not be held liable for paying the same by you.
However, as a friend if he is having need of money, then you should help him by paying out your loan.

Gaz83

RichardMiller wrote: »

Legally you are not bound to repay him for the loan taken by your father. Even if there exists some written evidence for that deal unless there is not consent from you on that, you will not be held liable for paying the same by you.
However, as a friend if he is having need of money, then you should help him by paying out your loan.

Alternatively, OP, you could instead ignore this utter drivel of a post and pay him not one penny. It is not, in any sense, "your" loan.